Dangote Petroleum Refinery & Petrochemicals has reduced the price of aviation fuel (Jet A1) by N100, bringing it down from N1,750 to N1,650 per litre in a move aimed at easing cost pressures on domestic airlines.
The refinery also reaffirmed its commitment to uninterrupted fuel supply nationwide, noting that the intervention is part of ongoing efforts to stabilise the downstream sector and support airline operators struggling with rising operational costs.
As part of a Federal Government-backed intervention programme, the refinery is also offering a 30-day interest-free credit facility supported by bank guarantees for marketers and airlines.
It also announced a shift from dollar-denominated pricing to a naira-based structure to ease transaction pressure further.
The development comes amid growing concerns over escalating aviation costs, with Jet A1 fuel accounting for a significant share of airline operating expenses. Industry stakeholders have repeatedly warned that the surge in fuel prices is threatening the sustainability of domestic flight operations.
Before the latest adjustment, the Airline Operators of Nigeria (AON) had raised concerns over what it described as an “astronomical and unsustainable” increase in Jet A1 prices, warning that airlines could be forced to suspend operations or pass costs to passengers through higher airfares.
In response to the crisis, the Federal Government last month convened a meeting led by the Minister of Aviation and Aerospace Development, Festus Keyamo, SAN, to address pricing concerns and market stability.
The minister reaffirmed the government’s commitment to balancing free-market principles with the need to protect critical national services.
As part of the broader intervention, a proposed pricing band was introduced, setting rates between N1,760 and N1,988 per litre in Lagos, and N1,809 to N2,037 per litre in Abuja. The government also approved debt relief measures for domestic airlines owed to agencies such as FAAN, NAMA, and NCAA.
Regulatory authorities further directed marketers to provide a 30-day credit facility to airlines and established an ad-hoc committee to review and streamline multiple taxes and levies embedded in domestic airfares.
The AON had earlier warned that continued fuel price volatility could lead to fare hikes, reduced passenger demand, or a complete shutdown of operations, with wider implications for jobs, financial institutions, and national mobility.
According to the association, Jet A1 prices had surged from about N900 per litre in February to as high as N3,300 per litre by mid-April 2026, a development it described as unsustainable for operators already grappling with thin margins.
